Prevention of Money Laundering

Money Laundering, has been a great menace to the world economy particularly in this heightened stage of terrorism and cyber crime. A large number of criminal activities are focused to generate money for the perpetrators. Such criminal activities include the activities of organized crime such as drug trafficking, sale of illegal arms, smuggling, embezzlement, tax evasion, corruption, illegal gambling, arson, racketeering, prostitution etc. which can generate huge sums. Once money has been amassed through these illegal activities, the next concern of the persons involved in such activities would obviously be to legalise them and bring them into the mainstream economy. Money Laundering is a process through which these ill-gotten money is made legal and infused into the mainstream economy. This is usually done by disguising the source, changing the form, or moving it to a place where they are less likely to attract attention of the authorities.